Realistbear Posted June 15, 2010 Share Posted June 15, 2010 http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article7150056.ece From Times Online June 15, 2010 China primes house tax to halt runaway prices Carl Mortished, World Business Editor China is considering a wealth tax on homeowners as it grasps at new weapons to halt a frantic rise in property prices that many fear poses the biggest threat to the Chinese economy. The Mayor of Chongqing, the world’s biggest metropolis, wants to tax the properties of its richest homeowners in order to stop the spread inland of a coastal property bubble that is pushing up prices in hotspots such as Shenzhen by 20 per cent a year. The Chinese clearly see HPI as a malevolent force in their economy unlike Brown who regarded it as an economic miracle. Quote Link to comment Share on other sites More sharing options...
Deckard Posted June 15, 2010 Share Posted June 15, 2010 Huang Qifan believes that a levy on the value of luxury homes, a huge investment in low-income housing and a cut in land sales to high-end developers are needed to ensure that China’s poor are not locked out of the housing market. He said: “We are considering a levy of 1 per cent. For those people who can afford to buy luxury, they will pay extra.” A 1% levy? Surely that's not enough to deter the rich... Quote Link to comment Share on other sites More sharing options...
AteMoose Posted June 15, 2010 Share Posted June 15, 2010 (edited) well it was 30% HPI, with an additional 10% inflation, still inflating at 10% http://www.globalpro....com/Asia/China Edited June 15, 2010 by AteMoose Quote Link to comment Share on other sites More sharing options...
Realistbear Posted June 15, 2010 Author Share Posted June 15, 2010 A 1% levy? Surely that's not enough to deter the rich... Top party bossesprobably have large BTL portfolios and luxury homes in Kowloon and Hong Kong. Rare for party bosses to shoot themselves in the foot. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 15, 2010 Share Posted June 15, 2010 Top party bossesprobably have large BTL portfolios and luxury homes in Kowloon and Hong Kong. Rare for party bosses to shoot themselves in the foot. Heh HOng Kong and Macau are actually money laundering cities for China, normally mainland Chinese cannot get residence in HK even if they marry into it, the CCP was smarter than that. However the HKG runs rings around the CCP and state that Mainland Chinese can BUY citizenship in HK for a substantial sum of money it was about £200K or something. When people go work in China they almost always get paid through HK to take advantage of their substantially lower rates of tax. In China rich people are scared after the two wealthiest people in China had their assets seized for corruption and bribery (a norm in Chinese business on the mainland) so many of them are shifting assets through HK, cash gold etc as the CCP does not have full control of the place although the ICAC got more powers since 1997 and you get the PRC anthem played 3 times a day on TV and radio they don't have much control over them yet. A common scam is to open a ltd company do biz in China then close it once you get the cash. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 15, 2010 Share Posted June 15, 2010 A 1% levy? Surely that's not enough to deter the rich... China's saying to be rich is glorious has a caveat as long as you don't get too rich as several rich men have been imprisoned lately for corruption (Read not letting the CCP's fingers into its pies) This 1% is essentially just a bribe. Bribery is normal in China, I'm surprised cops and officials do not have to declare on their tax return forms their bribes. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 15, 2010 Share Posted June 15, 2010 one of the chinese govt's advantages is it doesn't need a short term boom to help re-election Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 15, 2010 Share Posted June 15, 2010 one of the chinese govt's advantages is it doesn't need a short term boom to help re-election They've got Ak47s well er QBZ-95 rifles for that! Quote Link to comment Share on other sites More sharing options...
Minos Posted June 15, 2010 Share Posted June 15, 2010 George should shove stamp duty up to the level of VAT. That'll kill any future bubbles. Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted June 15, 2010 Share Posted June 15, 2010 http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article7150056.ece From Times Online June 15, 2010 China primes house tax to halt runaway prices Carl Mortished, World Business Editor China is considering a wealth tax on homeowners as it grasps at new weapons to halt a frantic rise in property prices that many fear poses the biggest threat to the Chinese economy. The Mayor of Chongqing, the world’s biggest metropolis, wants to tax the properties of its richest homeowners in order to stop the spread inland of a coastal property bubble that is pushing up prices in hotspots such as Shenzhen by 20 per cent a year. The Chinese clearly see HPI as a malevolent force in their economy unlike Brown who regarded it as an economic miracle. This is the same as the mansion tax that vince cable proposed.... Quote Link to comment Share on other sites More sharing options...
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